Standard & Poor’s | Moody’s Investors Service | Scope Ratings |
|---|
| April 2019* | August 2019* | September 2019* |
Long-term: BBB
Short-term: A-2
Outlook: Stable | Long-term: Baa3
Short-term: N/A
Outlook: Stable | Long-term: BBB
Short-term: S-2
Outlook: Stable |
Strengths | Strengths | Strengths |
One of the leading global network carriers with an excellent competitive position and one of the largest route network world-wide; strong market position at hubs in Frankfurt, Munich, Zurich and Vienna | One of the largest airlines in the world and a leading position in the European airline sector with a strong diversified route network | Global network coverage, diversified route network, member of the global airline alliance Star Alliance and a high share of business travellers with a strong market position at hubs in Frankfurt, Munich, Zurich and Vienna |
Balanced exposure to high-yielding, premium and long-haul traffic across its route portfolio; leading domestic market position in Germany; regional brands are well established | Robust business profile with diversified business segments reduces its exposure to volatility in passenger and cargo business | Leading position in home market of Germany; competitive advantage in premium market for long-haul traffic |
Besides the passenger airline business well diversified business profile with leading market positions in maintenance, repair and overhaul (MRO) services as well as airline catering adds stability to Lufthansa Group earnings | Diversity of business segments; maintenance, repair and overhaul (MRO) and airline catering business segments deliver stable profit contribution | Diversified operations (maintenance, repair and overhaul (MRO) and airline catering) with strong market positions mitigating cyclicality risks in passenger and cargo traffic |
Strong liquidity position | Good liquidity position; conservative financial strategy | Solid liquidity position |
Weaknesses | Weaknesses | Weaknesses |
Cost position as a competitive disadvantage | Profitability of the Airline Group depends on external factors including fuel prices and economic development in Europe | Cyclicality of the airline industry; Lufthansa Group’s profitability below its peers |
High capital intense business model | Restructuring and turnaround plan for Eurowings is likely to take time | Cost advantages could erode by competitive pressure |
